THE LATEST DEMOCRATIC INVESTIGATION INTO BIG OIL: Senate Budget Chairman Sheldon Whitehouse has launched another investigation into Big Oil – but this time, he’s focusing on claims that producers colluded with the Organization of the Petroleum Exporting Countries to raise oil prices.
What’s this based on? A recent investigation from the Federal Trade Commission claimed Scott Sheffield, a former CEO of Pioneer Natural Resources Company, colluded with OPEC and OPEC+ to raise crude oil prices. FTC’s investigation looked through public statements, text messages, in-person meetings, WhatsApp conversations and other conversations – information they say outlined Sheffield seeking to “align oil production across the Permian Basin in West Texas and New Mexico with OPEC+.” As a result, Sheffield was banned from joining the board of directors for Exxon Mobil’s $64.5 billion acquisition of Pioneer.
How does the latest investigation move the ball forward? The latest probe doesn’t just target Exxon or Pioneer – the investigation is looking into 18 different fossil fuel companies, requesting communications between the companies, the OPEC Secretariat, and OPEC/OPEC+ concerning oil production output, crude oil prices, and the relationship between the production and pricing of oil products. The requested communications range from Jan. 1, 2020 to the present.
The companies they’re looking into: APA Corporation, BP, Chesapeake Energy, Chevron, ConocoPhillips, Continental Resources, Crownquest, Diamondback Energy, Endeavor, EOG Resources, Exxon Mobil, Hess, Marathon, Occidental, Ovintiv, Permian Resources, Shell, and SM Energy.
Matching the House’s direction: House Energy and Commerce Ranking Member Frank Pallone had launched a probe that also came in the wake of claims against Sheffield – however, his probe is smaller in scope, looking into seven oil and gas companies.
The year of going after Big Oil: Democrats have launched a number of probes into oil executives and companies this year. Here’s a breakdown of the different investigations (we know it’s hard to keep track of every single one):
Why this is important: Facing criticism from Republicans over high energy costs, Democrats are going on the offensive on the issue – putting the blame on energy companies for ratcheting up oil costs for profit. And while energy may not have been the top topic at last night’s debate (energy and climate came up just once, more than halfway through) – it’s still a major concern for voters and a top point of contention for both parties. (More on the debate down below!)
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CHEVRON DEFERENCE OVERTURNED: The big news from this morning – the Supreme Court shredded the administrative law precedent known as Chevron deference, a decision that will significantly limit agencies’ discretion in interpreting laws and issuing regulations.
What it means for energy and environment: It will take years for the full ramifications of today’s ruling to become clear. But experts thought that a number of rules and programs related to environmental regulation would be at risk if the court were to undo Chevron deference, which obligated courts to give agencies greater scope to issue rules in cases where the authority granted by statute is ambiguous. Parts of the Inflation Reduction Act, including guidance related to eligibility for tax credits, could be vulnerable to legal challenge. The same goes for rules promulgated under the Clean Air Act, regulations guiding public lands management, and much more.
Early reactions: Natural Resources Defense Council senior attorney David Doniger said: “Whether they’re making food safer, air cleaner or safeguarding prescription drugs, agencies need to be able to respond to complex problems the modern world throws at us. This decision is profoundly destabilizing and leaves policy – and public health – up to the individual preferences and political biases of unaccountable judges.”
Sen. Chuck Grassley applauded the decision in a statement, and added that “Congress will now be under extreme pressure to be more specific when writing legislation, so that a bill’s plain text can be clearly interpreted by the courts and federal agencies when legislation becomes law. This decision brings enhanced accountability to Congress and the executive branch.”
In a joint statement, Speaker Mike Johnson, House Majority Leader Steve Scalise, and GOP Whip Tom Emmer said that the decision “represents the beginning of the end of the administrative state” and added that House committees would conduct oversight to ensure that agencies “no longer engage in excessive interpretative license in administering statutes under their jurisdiction.”
DEBATE RECAP – SUBSTANTIVE CONVOS ON ENERGY NOWHERE TO BE FOUND: But really, are we surprised?
Biden and former President Donald Trump squared off in a debate that left widespread concerns about Biden’s age and fitness as a candidate – and had Trump looking victorious in the aftermath.
But as for policy issues, there were few substantive points made. The issue of energy and climate got its small moment in the sun around the 58 minute mark in the 90 minute debate. But when CNN Anchor Dana Bash asked Trump if he would take any action to slow the warming of the planet, Trump initially steered away from the question – and instead continued his answers from a previous question, arguing how Biden’s policies have hurt black and Latino families.
When pressed again on the climate question, here was Trump’s response: “I want absolutely immaculate clean water, and I want absolutely clean air, and we had it. We had the best numbers ever. We were using all forms of energy, all forms, everything. And yet, during my four years, I had the best environmental numbers ever. And my top environmental people gave me that statistic just before I walked on the stage.”
Fact check: Those claims are a bit hard to substantiate. Air and water quality has generally improved over the last couple decades, but it’s hard to pinpoint if improvements stemmed from Trump’s policies, specifically, which were generally deregulatory.
Biden’s response: “I don’t know where the hell he’s been.”
Biden also dinged Trump for pulling out of the Paris Climate Accords – to which Trump defended his actions, arguing that the agreement was going to cost the U.S. “a trillion dollars” and would be a rip-off on the part of China and Russia. It’s unclear where the trillion dollar price tag comes from.
Biden also mentioned that he passed the “most extensive climate change legislation in history” – but didn’t go further than that.
What that represents: A missed opportunity to further brag about a major legislative win by Democrats – and underlines a messaging problem Democrats have in advertising their legislative achievements as they face a tight election against the former president.
AMBLER ROAD BLOCKED AND 28M ACRES IN ALASKA PROTECTED: The Bureau of Land Management took major steps this morning to limit mining and drilling in Alaska, an effort billed as protecting Native Alaskans and rural residents. “Guided by feedback from Tribal Nations, Native Corporations and the best-available science, the steps we are taking today ensure these important areas remain intact for generations to come,” Interior Secretary Deb Haaland said.
First, the agency finalized its decision to block the controversial Ambler Road project in northern Alaska, which would have served a planned zinc and copper mine.
Second, it released a Final Environmental Impact Statement for managing 28 million acres of public property across the state that included a preference for retaining protections that the Trump administration had sought to revoke, the Washington Post reports.
BLM said that revoking the protections would open the door to mining and oil and gas drilling and harm subsistence hunting and fishing in dozens of communities, as well as hurt wildlife, vegetation and permafrost.
The actions are likely to meet resistance from Alaska’s congressional delegation, including Democrat Mary Peltola, who has said that local interests favor construction of the road.
TRACTOR SUPPLY DROPS EMISSIONS GOALS UNDER CONSERVATIVE PRESSURE: Of note in the ongoing clash over ESG, the major retailer Tractor Supply said yesterday that it would drop its carbon emissions targets as part of a broader retreat from corporate activism.
The Tennessee-headquartered chain, which has stores that sell equipment, supplies, and feed throughout the country, had come under pressure from conservative activists, including the commentator Robby Starbuck, the Wall Street Journal reports.
Why it matters: This is the latest in a string of recent battles involving ESG, and another victory for the anti-ESG side. But Tractor Supply is particularly exposed to blowback from the right, given that its customer base skews male and rural – categories much more likely to be conservative.
Rundown
Reuters Seine water pollution levels still well above limits one month before Games
Oilprice.com Guyana’s GDP Skyrocket by Over 40% in a Single Year Thanks to Oil Boom
E&E News Forgo fossil fuel funds? No way, Stanford tells protesters.